#China #Hainan #Global Trade #Hainan Free Trade Port #Liu Xiaoming

Hainan's Ambitious Journey Towards Global Trade Integration

In a significant turn of events, Hainan Province, under the leadership of Governor Liu Xiaoming, is gearing up to realize a historic transformation with the implementation of independent customs operations at the Hainan Free Trade Port (Hainan FTP). This key initiative is highlighted in the development blueprint for the free trade port and signifies a pivotal moment in Hainan's ongoing evolution. For the past seven consecutive years, this endeavor has featured prominently in provincial government reports, underscoring its importance to Chinese President Xi Jinping, who emphasized the necessity for a smooth and orderly transition.

In an exclusive interview with Liu Xin of CGTN, Governor Liu Xiaoming assured that preparations are well underway to ensure effective implementation by the end of the year. Contrary to any misconceptions of isolation, Hainan's customs framework adopts a model of "open first line, controlled second line, and free circulation within." This thoughtful design is aimed at facilitating international trade while maintaining regulatory oversight between Hainan and the mainland.

Governor Liu articulated that, "Progress has been smooth, and five major systems - political, infrastructure, risk control, industry, and organizational support - have begun to take form. We are ready for this shift."

As Hainan embraces a more globally connected economy, the province is also committed to enhancing its business environment, which is seen as a vital component for prosperity. Efforts have been made to construct a market-oriented, law-based, and globalization-friendly business atmosphere. Notably, Hainan has pioneered the streamlining of governmental services, introducing a one-stop service platform for businesses, complete with intelligent policy alignment, credit repair assistance, and regulatory help, affording foreign entities registered in Hainan equal access to these resources.

In addressing some concerns surrounding the experiences of foreign investors, Governor Liu emphasized the importance of enhancing internet accessibility and payment facilities. Policies have been introduced to simplify transactions and to facilitate everyday life for companies and foreign residents in the region.

The province's growth strategy is underpinned by four key sectors: tourism, modern services, high-tech industries, and tropical agriculture. From 2018 to 2023, the combined contribution of these sectors to Hainan's economy surged from 52.4% to 67%. Furthermore, Hainan has outlined five strategic directions for development: agriculture, maritime initiatives, aerospace, green development, and the digital economy.

Particularly noteworthy is the focus on maritime development, encapsulated in the drive to "harness the power of the ocean." Hainan’s exclusive maritime zone encompasses around 2 million square kilometers, predominantly in deep waters. With nearly 1,000 enterprises and research institutes already engaging in deep-sea technology and marine industries, the maritime economy has sustained double-digit growth and contributes over one-third of the province’s GDP. Current projects aim to evolve deep-sea energy, high-end equipment manufacturing, marine aquaculture, marine biomedicine, and maritime tourism. “We aim to create a new Hainan at sea within the next decade,” Governor Liu declared.

In conjunction with economic development, Hainan prioritizes environmental sustainability. The province is recognized for its exemplary ecological environment, with the Bo'ao nearly-zero carbon emissions demonstration zone serving as a model for Hainan's green initiatives. Through energy renovation of buildings, renewable energy replacements, and agro-photovoltaic systems, carbon emissions on Dongyu Island, the permanent site for the Bo'ao Forum for Asia, have plummeted by 96.2%. The German Energy Agency has certified this site as China’s inaugural regional demonstration area where emissions are approaching zero.

With the prospect of independent customs operations on the horizon, a continually improving business environment, strategic industrial development, and firm ecological commitments, Hainan is positioned to emerge as a global leader in trade, innovation, and sustainability. The future beckons for Hainan Free Trade Port, promising dynamic growth and increased international engagement while ensuring alignment with national objectives and global economic trends.

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